BRM Business Research Method Session 1b.ppt

Introduction to Business Research

1-2
Business research is defined as the
systematic and objective process of
generating information for aid in
making business decisions.
- Including financial research, operational research,
Marketing research
Business Research Defined

1-3
Business Research
 Research information is neither
intuitive nor randomly gathered.
 Literally, research (re-search)
-“search again”
 Business research must be objective
 Detached and impersonal rather
than biased
 It facilitates the managerial decision
process for all aspects of a business.

Information
Reduces
Uncertainty
I don’t know
if we
should
offer on-site
child care?

vddf 5
“It ain’t the things we don’t know
that gets us in trouble. It’s the
things we know that ain’t so.”
Artemus Ward

1-6
Basic research
Applied research
Business Research Types

1-7
Basic Research
 Attempts to expand the limits of
knowledge.
 Not directly involved in the
solution to a pragmatic problem.

1-8
Basic Research Example
 Is executive success correlated
with high need for achievement?
 Are members of highly cohesive
work groups more satisfied than
members of less cohesive work
groups?
 Do consumers experience
cognitive dissonance in low-
involvement situations?

1-9
"The secret of success is to know
something nobody else knows. "
Aristotle
Onassis

1-10
Applied Research
 Conducted when a decision must
be made about a specific real-life
problem

1-11
Applied Research Examples
 Should McDonalds add Italian
pasta dinners to its menu?
 Business research told McDonald’s
it should not?
 Should Procter & Gamble add a
high-priced home teeth bleaching
kit to its product line?
 Research showed Crest Whitestrips
would sell well at a retail price of
$44

1-12
Scientific Method
 The analysis and interpretation
of empirical evidence (facts from
observation or experimentation)
to confirm or disprove prior
conceptions.

1-13
The Decision-making Process
Associated with the Development and
Implementation of a Strategy
 Identifying problems and
opportunities
 Diagnosis and assessment
 Selecting and implementing a
course of action
 Evaluating the course of action

1-14
Evaluation Research
 Evaluation research is the formal,
objective measurement and
appraisal of the extent to which a
given activity, project, or
program has achieved its
objectives.

1-15
Performance-monitoring Research
 Research that regularly provides
feedback for evaluation and
control
 Indicates things are or are not
going as planned
 Research may be required to
explain why something “went
wrong”

1-16
Determining When to Conduct
Business Research
 Time constraints
 Availability of data
 Nature of the decision
 Benefits versus costs

1-17
Is sufficient time
available before
a managerial
decision
must be made?
Is the infor-
mation already
on hand
inadequate
for making
the decision?
Is the decision
of considerable
strategic
or tactical
importance?
Does the value
of the research
information
exceed the cost
of conducting
research?
Conducting
Business
Research
Do Not Conduct Business Research
Time Constraints
Availability of
Data Nature of the Decision
Benefits
vs. Costs
Yes Yes
Yes
Yes
No No No No
Determining When to
Conduct Business Research

1-18
Value versus Costs
 Potential Value of a Business
Research Effort Should Exceed Its
Estimated Costs

1-19
Value
•Decreased certainty
•Increased likelihood
of a correct decision
•Improved business
performance and
resulting higher
profits
Costs
•Research
expenditures
•Delay of business
decision and
possible disclosure
of information to
rivals
•Possible erroneous
research results
Value Should Exceed
Estimated Costs

1-20
Major Topics for Research in Business
 General Business Conditions and
Corporate Research
 Financial and Accounting Research
 Management and Organizational
Behavior Research
 Sales and Marketing Research
 Information Systems Research
 Corporate Responsibility Research

1-21
Cross-functional Teams
 Cross-functional teams are
composed of individuals from
various organizational
departments such as
engineering, production, finance,
and marketing who share a
common purpose.

1-22
Business Research in the 21st Century
 Increased globalization
 Growth of the Internet and other
information technologies

1-23
Global Research
 Business Research is increasingly
global
 Market knowledge is essential
 A.C. Nielsen - more that 67%
international business

1-24
Global Business Research
 General information about
country - economic conditions
and political climate
 Cultural and consumer factors
 Market and competitive
conditions - demand estimation

1-25
The Internet
Is Transforming Society
 Time is collapsing.
 Distance is no longer an
obstacle.
 Crossing oceans is only a mouse
click away.
 People are connected 24 hours a
day, seven days a week.
 "Instantaneous" has a new
meaning.

1-26
Internet Research
 Seeking facts and figures about
an issue
 Surveys on Web sites

vddf 27
What is Marketing Research?

1-28
Redefining Marketing Research
The American Marketing Association
(AMA) redefined Marketing Research as:
The function which links the consumer, the
customer, and public to the marketer
through INFORMATION

1-29
Used to identify and
define market
opportunities and
problems
Generate, refine, and
evaluate marketing
performance
Monitor marketing
performance
Improve understanding
of marketing as a
process
Redefining Marketing Research

1-30
Definition of Marketing Research
Marketing research is the systematic and objective

identification

collection

analysis

dissemination

and use of information
for the purpose of improving decision making related
to the

identification and

solution of problems and opportunities in
marketing.

1-31
Market Research
 Specifies the information necessary to
address these issues
 Manages and implements the data
collection process
 Analyzes the results
 Communicates the findings and their
implications

1-32
Classification of Marketing
Research
Problem Identification Research
 Research undertaken to help identify problems
which are not necessarily apparent on the
surface and yet exist or are likely to arise in the
future. Examples: market potential, market
share, image, market characteristics, sales
analysis, forecasting, and trends research.
Problem Solving Research
 Research undertaken to help solve specific
marketing problems. Examples: segmentation,
product, pricing, promotion, and distribution
research.

1-33
A Classification of Marketing Research
Marketing Research
Problem
Identification Research
Problem Solving
Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Promotion Research
Distribution Research

1-34
 Determine the basis of segmentation
 Establish market potential and
responsiveness for various
segments
 Select target markets
 Create lifestyle profiles:
demography, media, and
product image characteristics
SEGMENTATION RESEARCH
 Test concept
 Determine optimal product design
 Package tests
 Product modification
 Brand positioning and
repositioning
 Test marketing
 Control score tests
PRODUCT RESEARCH

1-35
PRICING RESEARCH
 Pricing policies
 Importance of price in brand selection
 Product line pricing
 Price elasticity of demand
 Initiating and responding to price changes
$ALE
PROMOTIONAL RESEARCH
 Optimal promotional budget
 Sales promotion relationship
 Optimal promotional mix
 Copy decisions
 Media decisions
 Creative advertising testing
 Evaluation of advertising effectiveness
 Claim substantiation
0.00% APR

1-36
DISTRIBUTION RESEARCH
Determine…
 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & resale coverage
 Channel margins
 Location of retail and wholesale outlets

1-37
Research Process
Step 1: Problem Definition
Step 2: Development of an Approach to
the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and
Presentation

1-38
The Role of Marketing Research
Controllable
Marketing
•Product
•Pricing
•Promotion
•Distribution
Variables
Marketing
Research
Marketing
Decision
Making
Providing
Information
Assessing
Information
Needs
Marketing Managers
• Market Segmentation
• Performance & Control
• Target Market Selection
• Marketing Programs
Uncontrollable
Environmental
Factors
• Economy
• Technology
• Laws &
Regulations
• Social & Cultural
Factors
• Political Factors
Customer Groups
• Employees
• Shareholders
Suppliers
•
• Consumers

1-39
Marketing Research Suppliers &
Services
LIMITED SERVICE
Branded
Products
and Services
Data
Analysis
Services
Analytical
Services
Coding and
Data Entry
Services
Field
Services
FULL SERVICE
Syndicate
Services
Standardized
Services
Customiz
ed
Services
Internet
Services
RESEARCH
SUPPLIERS EXTERNAL
INTERNAL

BRM Business Research Method Session 1b.ppt

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